MUMBAI: The Bombay high court on Monday slammed a cooperative housing society in Parel for holding on to a payment for redevelopment of 49 buildings, by failing indefinitely to finalise bids of developers for the project. Justice S J Kathawalla expressed anger at the Abhyudaya Nagar Sahakari Gruhnirman Sansthacha Sangh over its "dishonest way'' to retain money taken from bidders in 2014 without paying interest.

The federation of 47 low income group societies constructed in 1956-60 has been wanting to carry out "cluster redevelopment'' in one of the largest such projects at Kalachowkie, an old mill neighbourhood. But bids invited from developers in 2014 are yet to be finalised. The society received seven tenders in 2014, of which four, including one by Omkar Realtors, were shortlisted. The society had 180 days to select the winning bidder, and under a permissible clause, extended that by 180 days. When it went for a third extension of 180 days, the developers objected. Despite that there was a 90-day extension, and Omkar moved the HC in April, demanding its Rs 5 crore earnest money deposit be returned, and that the society be restrained from extending the tender period.

On Monday, as Omkar Realtor's counsel, Cherag Balsara, argued how the society was illegally benefiting due to its delaying tactics, Justice Kathawalla agreed. "You can't keep extending like this and keep their money, interest-free. This is downright cheating, Mister,'' the judge told the housing society's lawyer. "How much is the interest on Rs 20 crore?'' he asked.

The society lawyer tried to say that the process would be finalised on July 7, which was a matter of days but the judge did not accept the explanation. The society had said that the bidders were "not entitled even after the tender process is complete to get any interest on earnest money deposit''. It also said that of the 47 societies, only 30 had passed the resolution, and 17 were yet to select a developer. The society counsel then undertook to deposit the amount with interest within a week, in court.